Should You File for Chapter 13 after a Foreclosure?

Nov 30, 2021 | Bankruptcy

Getting behind on your mortgage payments can easily happen. Once you miss one or two, it can be very challenging to catch up on the mortgage payments to stop foreclosure. Additionally, the mortgage company makes it more difficult by supplementing late fees and other costs. Moreover, mortgage companies demand you catch up on the mortgage payments in one lump sum.

For some people, signing over the property and assets to the bank or permitting the bank to foreclose is the only alternative they have since they cannot afford to pay the mortgage payments and do not want to appear as if they have committed fraud. However, should you file for chapter 13 bankruptcy after a foreclosure?

Can you file Chapter 7 After a foreclosure?

When you lose your property or assets and cannot afford to keep them, you may wonder why you would want to file a chapter 7 bankruptcy. In a chapter 7 bankruptcy, you must identify your exempt property. Exempt property is protected from debt collectors and secured creditors. Exemption laws are found under federal law and state law. If you use a Texas exemption when you file bankruptcy, you will be able to keep your property and other assets. Furthermore, you will positively impact your credit report and work on achieving your financial goals. Arlington, TX, offers unlimited homestead exemption laws that protect the equity you have in your property, as long as it does not surpass a specific acreage.

Contrariwise, a chapter 7 bankruptcy can eliminate your liability to pay outstanding unsecured debts. Nevertheless, the chapter 7 bankruptcy does not eliminate your obligation to pay for the property. An automatic stay can momentarily stop foreclosure proceedings on your property. However, you have a brief period to pay any past due payments.

Additionally, it would be best if you continued making regular monthly mortgage payments after the bankruptcy case is discharged until the entire balance you owe is fully paid. 

Contact the experienced Arlington, TX bankruptcy lawyer at Machi Law Firm, PLLC, to schedule a free consultation if you encounter any legal issues during the entire bankruptcy process. We have a skilled legal team that can provide you with legal advice regarding your bankruptcy case.

Can you file chapter 7 without a lawyer?

Suppose you can pay an Arlington bankruptcy attorney to help you clear your debt and make payments. In that case, you may want to contact an experienced bankruptcy lawyer in Arlington, TX, and schedule a free consultation. However, how will you get out of debt if you cannot afford to pay the average Arlington bankruptcy attorney fees for a chapter 7 bankruptcy attorney?

The bankruptcy code does not require you to hire an Arlington bankruptcy attorney or bankruptcy lawyers to file for bankruptcy. You can file chapter 7 bankruptcy without an Arlington bankruptcy attorney. Filing bankruptcy solely may seem overwhelming. Nonetheless, with Upsolve system, you can file for bankruptcy without an Arlington bankruptcy attorney or bankruptcy lawyer.

Does bankruptcy clear a foreclosure?

One of the merits of filing bankruptcy in Arlington, TX, is the automatic stay. In chapter 7 bankruptcy and chapter 13 bankruptcy filing, the automatic stay is an injunction ordered by the federal law court as soon as you file a bankruptcy petition.

The automatic stay can stop foreclosure proceedings immediately after you file bankruptcy and notify the mortgage lending company. Furthermore, all collection activity by secured creditors against you will be halted thanks to the automatic stay. A creditor can ask the bankruptcy court to lift the automatic stay. However, this will only happen after a court hearing. If the bankruptcy law court believes you will not likely afford the property, the automatic stay may be lifted, and the foreclosure proceeding could resume.

To avoid losing your property and other assets, hire an experienced bankruptcy attorney at Machi Law Firm, PLLC. Our legal team can help simplify the bankruptcy process and help you keep your property and other assets. Call our skilled Arlington, TX bankruptcy lawyers at 817-934-1998 for legal advice and get a free case evaluation.

Can you file Chapter 13 after foreclosure?

Losing your property after a foreclosure can be devastating. Luckily, filing chapter 13 bankruptcy is the right solution that can save your property. Chapter 13 bankruptcy proceedings allow you to repay debts through a reorganization bankruptcy repayment plan. Under chapter 13 bankruptcy, you can include past-due mortgage payments into this debt repayment plan that enables you to keep your property and clear your unsecured and secured debts such as student loans, medical bills, car loans, wage garnishment, tax filings, and child support.

However, before filing for bankruptcy in chapter 13, specific requirements should be approved, such as the disposable income used to fund the payment plan. Nevertheless, the chapter 13 bankruptcy repayment plan allows you to pay off past due debts in small portions at a time over several years instead of blatantly demanding a lump sum. If you can remain current in these reorganization bankruptcy monthly payment plans and mortgage payments, you can keep your property and other assets.

Are you considering filing bankruptcy after foreclosure in Arlington, TX? 

To file bankruptcy in Arlington, TX, you will file at the Northern District of Texas Bankruptcy Court. You will need an experienced TX bankruptcy lawyer, a debt repayment plan, and adhere to the Arlington bankruptcy filing guidelines. A skilled Arlington bankruptcy attorney can be invaluable when filing for bankruptcy.

The bankruptcy court requires you to take a credit counseling class, then prove eligibility. The credit counseling class is a federal necessity that takes a shorter period. Besides the credit counseling class, you will also have to take a debtor education course. A debtor education course helps get your debts discharged and obtain a fresh financial start.

Not all Texans are eligible for a chapter 7 bankruptcy. Similarly, if you have amassed unsecured and secured debts, you may not qualify for chapter 13 bankruptcy either. Since you cannot file bankruptcy for either chapter 7 or chapter 13, this impacts your credit report and hinders you from achieving your financial goals. Therefore, hiring an experienced bankruptcy attorney at Machi Law Firm in Arlington, TX, can help solve your legal issues.

An experienced Texas bankruptcy lawyer will walk you through the bankruptcy process for a nominal fee. An experienced bankruptcy attorney will cost you a lot. Nonetheless, when you compare this to the benefits of filing bankruptcy after foreclosure Arlington, TX: discharging unsecured and secured debts with chapter 7 bankruptcy, saving your home and other property from the collection in chapter 13 bankruptcy, the merits of hiring an experienced Texas bankruptcy lawyer in Arlington, TX, are clear.

How long will bankruptcy hold off a foreclosure? 

A foreclosure is the act of a creditor taking back property after you have failed to keep up your mortgage payments. A foreclosure on your property may happen after:

  • You miss mortgage payments within a month.
  • You enter default if you do not make your late payments within a month.
  • The lender sends you a letter of breach or demand after a30-45 days.
  • The lender files a foreclosure notice about three months after your first missed payment.
  • You receive a default letter around 60-90 days after the initial missed payment.

Most individuals chose to file chapter 13 bankruptcy explicitly to avoid foreclosure. The mortgage foreclosure case stops upon filing bankruptcy as you enter an automatic stay. An automatic stay momentarily stops all debt collection efforts, including foreclosure, regardless of the stage of your foreclosure.

Nevertheless, if you cannot handle your individual case adequately, contact the experienced Texas bankruptcy lawyer at Machi Law Firm, PLLC, in Arlington, TX, to schedule a free consultation. Our legal team constitutes an attorney-client relationship. We will offer you a free consultation and the legal advice you need to keep your property and clear your secured and unsecured debts like credit card debt, child support, and student loans.

Seek legal advice from an Arlington bankruptcy attorney 

It is fundamental to seek legal advice from an experienced team of bankruptcy lawyers in Arlington, TX, when facing a foreclosure. Filing Chapter 13 bankruptcy should be done swiftly and before any property foreclosure sales take place. The Arlington, TX bankruptcy lawyers at Machi Law Firm, PLLC, can help you structure a repayment plan to stop foreclosure and get a fresh start.

The Machi bankruptcy law firm services constitute an attorney-client relationship that has existed for almost a decade. Contact us for a free consultation on how to file bankruptcy in Arlington, TX, at 817-335-8880 and get your debts discharged.

Ted Machi & Associates, P.C.

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